THE BOURSE WHISPERER: Midwinter Resources (ASX: MWN) has entered into a binding term sheet with Southern Hemisphere Mining (ASX: SUH) to farm-in to a 65 per cent interest in the Mantos Grandes project located in the Province of Limari, in Chile.
Midwinter outlined the features of the Mantos Grandes project to include copper, gold and silver mineralisation, which occurs in outcrops and extends to depths of at least 130 metres below topographic surface exposure.
Mantos Grandes location plan. Source: Company announcement
The project has a history of production and provides underground access to mineralisation through a network of recently developed mine workings.
An extensive data-base exists of the project, which includes records of diamond drilling, rock chip sampling, underground adit sampling and production as well as a small scale (200 tonnes per day) conventional copper flotation plant.
“The company believes the project has strong potential for definition of high-grade copper mineralisation with significant gold and silver credits within the immediate area of the previous mining activity and within satellite targets identified from geological indicators,” Midwinter Resources said in its ASX announcement.
In a more-detailed description Misdwinter said Mantos Grandes is a hypogene, skarn related copper-gold-silver deposit, which has been mined using small scale underground methods.
According to the company geological data suggests that, in addition to the main skarn deposit, potential exists to discover secondary skarn mineralisation as well as porphyry style mineralisation within the lease areas.
“The Mantos Grandes copper gold project represents a target for high grade, hypogene, skarn related copper mineralisation with significant gold and silver credits,” Midwinter explained.
“The former mine exploited a number of moderately sized zones of mineralisation.
“Initial drilling would make use of the existing geological and mining database to target known mineralisation and potential extensions in and around the mine area.
“Surface and underground drilling would be used with the aim of establishing a JORC-compliant Mineral Resource.”
Midwinter indicated it intends to carry out geophysical and geochemical surveys to further evaluate existing prospects and bring new prospects to a drill ready stage.